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Dec 31, 2020
Target Hospitality Q4 2020 Earnings Report
Target Hospitality's Q4 2020 earnings decreased due to the COVID-19 pandemic's impact on energy end-market activity, partially offset by Keystone XL project revenue.
Key Takeaways
Target Hospitality reported a decrease in revenue and net loss for Q4 2020, primarily due to reduced energy end-market customer activity caused by the COVID-19 pandemic. This was partially offset by increased activity from the TC Energy Corporation's Keystone XL pipeline project.
Q4 2020 revenue was $51.6 million, compared to $76.1 million in Q4 2019.
Net loss for Q4 2020 was $9.2 million, compared to net income of $0.1 million in Q4 2019.
Adjusted EBITDA for Q4 2020 was $15.8 million, compared to $36.0 million in Q4 2019.
The Keystone XL pipeline project contributed approximately $13.8 million in revenue in Q4 2020.
Target Hospitality
Target Hospitality
Target Hospitality Revenue by Segment
Revenue by Segment
Government Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
Target Hospitality anticipates gradual increases in customer activity throughout 2021, with a more normalized market in 2022. The company announced its 2021 financial outlook with total revenue between $235 and $245 million and adjusted EBITDA between $88 and $95 million.
Positive Outlook
- Total revenue between $235 and $245 million
- Adjusted EBITDA between $88 and $95 million
- Interest expense between $34 and $36 million
- Discretionary Cash Flow between $55 and $60 million
- Targeting a total net leverage ratio of below 4.0x by year end 2021
Revenue & Expenses
Visualization of income flow from segment revenue to net income